MH Loan and Taxes

[Bob]

Is the loan for a MH considered a mortgage with all the tax deductions of interest or is it considered a personal loan or does the place you put the MH 1) a rental lot versus 2. real land become the deciding factor on the type of loan.
Thanks
Bob

[Ron]

Owning the real estate is what makes the difference. A MH on rented land cannot have a mortgage, as it is considered personal property. It will have a consumer loan similar to automobile financing and a higher interest rate.

If on rented land, then no deduction for RE taxes is possible since you would not own the land. You could deduct any state personal property taxes assessed on the MH. (On your federal return, scedule A item.)

Check with a tax preparer about deducting the interest on a MH consumer loan. Since the MH is your home, it may be possible. You would need to research this before taking any deduction.

[Alan]

As far as the interest on the loan, it is my understanding, that it would be deductable, since it is a loan for a primary residence. Of course the real estate taxes would be paid by the owner of the land.